Opportunity Cost Answers

Venya and Kari own a flower shop that specializes in custom bouquets. Wanting to expand into selling potted plants, they create a production possibility chart to assess whether the potted plants are a good idea. Study their chart:

Which of the following are examples of limited resources on the part of consumers?

On a production possibility curve, data points that fall outside of the curve represent

Rescooperate Ice Cream Shop recently analyzed their books. They found that in the past year, they made $100,000 selling ice cream and spent $75,000 on supplies and factory space. The remaining $25,000 represents

Demonstrating opportunity cost is done through production

Opportunity cost occurs because of a producer’s need to

Which of the following has the largest impact on opportunity cost?

Ricardo works part time at a local computer store. One day, his manager approaches him about moving from cashier to floor supervisor. Ricardo is excited because the promotion comes with a raise; however, the extra work hours would take away from time with his friends and family. In the end, he decides to take the promotion.What is Ricardo’s opportunity cost?

Producers can create their maximum combination of goods, as long as they

Look at the equation framework.